Companies in need of money look to various sources for funding. Although a plain-vanilla loan from a single bank is one conceivable source of funding, such a source may be inadequate, inefficient, and/or impractical. Since the leveraged buyouts (LBOs) of the 1980s, syndicated loans have become a popular method for companies to raise capital. In particular, large LBOs that require a company to raise a large amount of funds may find a syndicated loan to be a more practical/feasible source of funding than a traditional bilateral or individual credit line.
As a technique for liquidity and risk management, it is common for lenders to use secondary markets to trade loans. However, a lender's ability to trade such loans is hindered by the limited approaches available for administering lending contracts with retroactively adjustable interest rates. In particular, agreements that provide a borrower with the benefit of a retroactive interest rate adjustment encounter setbacks in the secondary sales market. Therefore, a need exists for a technique and system to, among other things, facilitate the equitable sharing of retroactive interest rate adjustments among lenders in a secondary market.